The internet is evolving, and the next phase of digital transformation is here. It’s called Web 3.0, and it’s going to change everything about how we interact with websites, services, and information online. Technological advancements have enabled artificial intelligence (AI), big data, and blockchain to flourish in ways previously unimaginable. In other words, humanity has reached the perfect storm for a new age of web-based services to thrive. These three pillars of Web 3.0 are changing the way businesses conduct their operations online and offline; from e-commerce sites to software development and virtually everything in between. In this article we take a look at what each of these technologies means for businesses everywhere. But first, let’s explore what Web 3.0 is.
What is Web 3.0?
Web 3.0 represents a new phase in the evolution of the world’s most prominent communication medium. It’s the next evolution of the internet, and it’s set to bring a lot of change with it. Web 2.0 is the current iteration of the world wide web that most people interact with on a daily basis. It’s a system that revolves around the creation of information and data, and it has become an essential part of our lives.
Web 3.0 represents a step beyond the systems and technologies that power Web 2.0. Where Web 1.0 was all about content creation, and Web 2.0 is about content consumption, Web 3.0 is about the exchange of value. In the same way that Web 2.0 enabled the creation of social networks like Facebook, Web 3.0 enables the creation of decentralized networks that operate outside of centralized control.
Quick jargon buster:
Web 1.0 refers to the first-generation internet and its services, like email and basic websites.
Web 2.0 refers to the advent of social media and online user-generated content platforms like Facebook, YouTube, and Wikipedia.
Web 3.0 refers to the next stage of digital transformation. It is a paradigm shift in which AI, big data, and blockchain will play the central role. It is the future of the internet and digital business, and will profoundly transform the way we live, work, and interact with one other.
Now let’s look at the three pillars which make up Web 3.0.
Artificial Intelligence
Artificial intelligence (AI) refers to systems that can learn and adapt based on data inputted by humans. AI is what powers self-driving cars, automated customer service, and voice-controlled devices like Amazon’s Alexa. AI has been around since the 1950s, and its growth has accelerated significantly in recent years. This is mainly due to the rise of computing power and the availability of vast amounts of data.
A big part of the evolution of AI is the creation of machine learning algorithms. These algorithms help computers to “learn” in a way similar to humans, but at a much quicker rate. AI has many applications in the world of business. It has multiple uses in the areas of customer service, marketing, and digital transformation initiatives.
AI is poised to play a central role in the evolution of the web. It is on the cusp of transforming how businesses operate, and how consumers interact with each other. AI will allow businesses to engage in natural conversations with customers via digital assistants like Amazon’s Alexa or Google Home. AI is already being used to optimize business operations, customer service, marketing campaigns, and more.
Big Data
Big data refers to the large amounts of information that businesses can collect and analyze to gain valuable insights. It has become especially common in recent years as businesses have started to rely on digital systems and sensors.
Big data allows businesses to make highly informed decisions based on things like customer behavior, social media engagement, and online activity. It’s used to optimize the way businesses operate internally and externally. It’s also used to create highly personalized experiences for customers by analyzing their data.
The advent of big data has given rise to new industries, like data analytics and data science. Big data has also empowered artificial intelligence and has been crucial to the development of blockchain. Big data can be analyzed to uncover insights and predict future outcomes. Big data is used in a plethora of industries, from healthcare to finance and more.
With the help of Big Data, companies can understand their customers in a more personalized way. However, it’s important to note that customers may not always want businesses to know everything about them. Case in point, the Cambridge Date Analytica scandal. In the 2010s, personal data belonging to millions of Facebook users was collected without their consent by British consulting firm Cambridge Analytica, predominantly to be used for political campaigning purposes.
Now with new privacy laws such as the EU’s GDPR, companies now have to ask customers for consent before using or tracking their online activities.
Blockchain
Blockchain is a decentralized public ledger that enables the secure transfer of information. It’s also the technology that powers cryptocurrencies, such as Bitcoin. Blockchain has experienced a surge in interest and investment in recent years. This is due to the increasing popularity of Bitcoin along with advancements in the technology itself.
Blockchain uses advanced cryptography to create a decentralized network in which information is stored on multiple computers at once. This makes the information extremely difficult to hack or manipulate. The goal of blockchain is to allow digital information to be recorded and distributed, but not edited. This way, a blockchain is the foundation for immutable ledgers, or records of transactions that cannot be altered, deleted, or destroyed. This is why blockchains are also known as a Distributed Ledger Technology (DLT).
Blockchain allows data held in a database to be spread out among several network nodes at various locations. This not only creates redundancy but also maintains the fidelity of the data stored. If someone tries to alter a record at one instance of the database, the other nodes would not be altered and this would prevent a bad actor from doing so. If a user were to tamper with Bitcoin’s record of transactions, all other nodes would cross-reference each other and easily pinpoint the node with the incorrect information. This system helps to establish an exact and transparent order of events. This way, no single node within the network can alter information held within it.
Because blockchain-based networks are decentralized, they operate outside of centralized control. This means that they don’t rely on a single authority, such as a government or financial institution, to operate. Blockchain technology is already having a significant impact on businesses and the economy in general. It has several applications in supply chain management, digital rights management, cybersecurity and much more.
Conclusion
The three pillars that make up Web 3.0 are already changing the way businesses operate. By understanding their strengths, businesses can prepare for major changes in the years ahead.
Blockchain has already begun to change the face of digital transformation initiatives. Many organizations are implementing blockchain technology to improve the security of their supply chains. Blockchain can help businesses to ensure that their products are authentic and that the supply chain is transparent. Blockchain is also set to transform the way that companies manage digital rights management. It can help to reduce piracy and secure data.
Artificial intelligence is poised to transform customer experience. It will allow businesses to be more strategic and personalized with their interactions with customers. AI will also allow for faster decision-making at scale by enabling machines to make human-like decisions. It is projected that AI will create $15.7 trillion in value by 2030.
Big data is already transforming industries like healthcare, thanks to innovators like Apple and Amazon that have created health-centric ecosystems. Apple’s Health App, for example, has led to the rise of a quantified self movement. Big data will make businesses more efficient, result in better decision-making, and empower predictive analysis.
The next few years are set to be extremely exciting. With Web 3.0, people and businesses can expect a more secure, transparent, and personalized online experience. Businesses will run more efficiently and create more value for their customers. Financial systems will be more secure and transparent. Data will be protected, used responsibly, and shared across industries.
If you are not on the Web 3.0 train, you are going to be left behind. Early adopters of AI, Big Data and Blockchain technology will lead the pack into the future. So don’t get left behind, and start finding ways to optimise and integrate these three pillars of Web 3.0 into your business operations.
This article was originally published in Issue 13 of The Business Anecdote magazine.
To get your free digital copy emailed to you, please subscribe at https://www.thebusinessanecdote.com/subscription
